Building Amidst Challenges: Financial Insights for the Construction Industry

Published by Matt Brady | January 24, 2024

Workers at the construction site

The construction industry has seen an increase in challenges in these post-pandemic times. From supply chain disruptions to rising material costs and skilled labor shortages, construction businesses are in need of financial guidance.

BradyRenner is a trusted financial ally, offering tailored solutions to navigate these hurdles and optimize financial health. When supply chain disruptions threaten project timelines and increase costs, BradyRenner provides a specialized project accounting strategy in order to minimize financial penalties within the construction industry. By utilizing their expertise in managing accounts payable and receivable, BradyRenner is able to safeguard profit margins amid material cost increases.

In addition to these profit-saving measures, BradyRenner offers crucial guidance on cash flow considerations which empowers businesses to address skilled labor shortages while maintaining financial stability. BradyRenner ensures construction enterprises thrive in the face of financial complexities by acting as a reliable sounding board for business owners.

Challenges Within the Construction Industry

Alongside many other businesses, construction companies find themselves facing several challenges in the current economic climate. BradyRenner knows that business owners need experts to serve as trusted advisors throughout the process of securing their financial wellbeing, and they are familiar with the financial dynamics of the construction industry.

Supply Chain Disruptions

Since the beginning of the global pandemic, construction supply chains have been unreliable, often causing building delays which leads to increased costs and even financial penalties. BradyRenner’s strategic approach is designed to efficiently navigate delays caused by disruptions, ensuring projects remain on track and financial penalties are minimized. Some options include purchasing locally, providing suppliers with long lead times, and keeping suppliers aware of project timelines. Additionally, construction companies should have material alternatives in mind should they be unable to purchase their desired materials in time. 

Increased Material Costs

There is no avoiding the fact that construction material costs have skyrocketed in recent years. BradyRenner knows this negatively impacts small businesses, so they help owners face these challenges head on. In order to combat escalating costs which squeeze profit margins, BradyRenner employs their skills in managing accounts payable and receivable models which allows construction businesses to maintain healthy profit margins. This is another reason that considering alternative materials may help protect profit margins.

Skilled Labor Shortage

Due to a shortage in skilled laborers, construction businesses are caught in a dilemma: delay projects, which will result in additional costs and possibly fines, or overpay for skilled workers who are in a position to negotiate for premium pay? Because of the COVID-19 pandemic which caused a significant number of construction projects to pause indefinitely, many construction professionals left the industry altogether to pursue other careers during that time. BradyRenner empowers construction companies to navigate this challenge by offering assistance in financing and cash flow considerations. Inhouse training of construction professionals is another option for construction companies, and BradyRenner can offer financial guidance and help owners determine if this is an option for their individual business.

BradyRenner Offers Cross-Cutting Solutions

A holistic financial analysis is top priority for the success of any small business, which is why a commitment to continuous financial analysis remains the cornerstone of BradyRenner. By serving as a reliable sounding board, they offer regular insights, guiding business owners throughout supply chain disruptions, material cost increases, and skilled labor shortages. 

By utilizing their project accounting expertise, BradyRenner crafts a comprehensive strategy for their clients in order to minimize penalties, optimize project profitability, and effectively manage the impact of material cost increases on the construction industry. These cost increases may be unavoidable, but navigating them successfully is possible. Through BradyRenner’s expertise with surety bonds and their solid banking relationships, they are able to help construction businesses address challenges, maintain financial health, and effectively support owners in this ever-changing construction landscape.  

To learn more about how BradyRenner can help your construction business, please contact us today. And as we wrap up our discussion of finance in construction, make sure to check back to read the next installment in our series which will focus on healthcare finances in today’s ever-changing world. Stay tuned for valuable insights into the unique challenges and financial solutions shaping the healthcare industry.